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Elystan Capital Advisers to invest in distressed German mortgage assets

Private equity house GI Partners has backed the launch of Elystan Capital Advisers, a Munich-based investment firm targeting mortgage backed assets and the mortgage banking sector in Germany, Austria and Switzerland.

GI Partners will provide investment capital from its recently closed third fund, GI Partners Fund III, which closed at USD1.9bn in October 2009.

Following recent developments in the financial markets, Elystan founders Keith Fischer, Dr. Robert Grassinger and Ulrich Kastner believe there is significant pressure on the banking industry to strengthen balance sheets and minimise exposure to certain non-core and non-performing assets.

It is expected that this pressure will lead to a number of investment opportunities across the mortgage and real estate sector as financial firms look to reduce their exposure to these non-performing assets through divestment. 

The firm’s strategy is to acquire these non-performing loan books as well as mortgage-backed securities and real estate portfolios which it plans to consolidate and actively manage to improve performance.

In addition, Elystan has been working with GI Partners since June 2009 to pursue the acquisition of a bank to be used as a platform to expand and grow a mortgage lending business which can fill the gap in credit available to Mittelstand companies.

Fischer had previous roles at Citibank, Orion Capital Managers and Lehman Brothers. Following an early career in academia, Grassinger has held a number of senior roles within Württemberger Hypo and Hypo Real Estate. Kastner has worked at numerous financial institutions in UK and Germany including Deutsche Bank, Dresdner Kleinwort Wasserstein and Lehman Brothers.

Mark Tagliaferri, managing director of GI Partners, says: “We are delighted to be working with the three principals and backing the Elystan platform. Their strong industry experience combined with their strategic vision of opportunities in the German market make them an ideal partner for GI Partners. We look forward to building Elystan into a significant business in the German mortgage banking sector.”

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